If you need to file under Making Tax Digital for Income Tax, your tax return must go through software that works with HMRC’s system. This guide is for individuals only, including sole traders, landlords, and self‑employed people who are filing their own return rather than acting for someone else. Using HMRC‑compatible software matters because it is the route HMRC expects you to use for keeping digital records, sending updates, and filing your return under MTD ITSA.
This blog explains why using an accountant can save you time, reduce stress, and make sure your tax filings are accurate. Understanding MTD ITSA requirements, who must comply, and your main responsibilities are important, but you don’t have to manage everything yourself. With professional help, compliance becomes much easier.
Check if you need to use MTD ITSA
Before starting, check whether MTD ITSA applies to you. From 6 April 2026, MTD ITSA is scheduled to apply to individuals whose total annual qualifying income from self‑employment and property is above £50,000, based on current HMRC guidance (subject to legislation).
HMRC has announced plans to extend MTD ITSA to people with lower levels of qualifying income in later years, so it is important to check the latest position on GOV.UK to see when your own start date applies. Some people may be exempt – for example, if it’s not reasonably practical for them to use digital tools – so you should check your position using the GOV.UK guidance or eligibility tools. Even if HMRC writes to you, it is still your responsibility to check whether you need to use the service and when you need to start. The GOV.UK checker and official guidance are the main places to confirm this.
Prepare your information before submission
Gather All Income Sources
Before filing, ensure your software includes all income for your return. HMRC may already hold some details, but not everything appears automatically. You may need to add:
- Savings income
- Dividends
- Other income or gains not already shown in the software
Review Quarterly Updates
Your quarterly updates should also be checked before you move to the final stage. These updates are part of the MTD process, so your year‑end return should match the records and figures you have built up during the year. If something looks wrong, fix it in the software before you file.
Include Adjustments and Reliefs
Year-end filing is not only about copying over the figures from your updates. You may still need to make adjustments, claim reliefs or add information that affects your final tax position. It is a good idea to go through the records carefully so the final version reflects the full tax year, not just the running totals sent earlier.
Complete End of Period Statements and Final Declaration
Before you submit, the year‑end work in your software needs to be completed. That includes finishing the necessary end‑of‑period steps for your business or property income and making sure all other income sources and gains have been added. GOV.UK and related guidance explain that these details need to be included in your compatible software before you complete the Final Declaration, which is the step that finalises your MTD ITSA position for the year.
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Pick software that can do more than basic bookkeeping. It should support your income sources, let you keep digital records, send quarterly updates and handle the final declaration. GOV.UK also says some people may use bridging software if they already keep records in spreadsheets.
Popular Software Options
The safest way to look for a provider is to use HMRC’s software finder. GOV.UK says this tool helps you find software that matches your needs, and all the products listed there are described as compatible with MTD for Income Tax, rather than being “recognised” or “approved”. HMRC does not recommend one brand over another, so the right choice depends on how you keep records and what types of income you need to report.
Step-by-Step Submission Using Your MTD Software
- Log in to Your Software: Log into your MTD‑compatible software to manage your MTD ITSA submissions and view the obligations that are due. Alongside your software, your personal HMRC account is helpful for checking upcoming deadlines and the amounts HMRC shows as due. The MTD ITSA tax return itself, though, still has to be sent using your compatible software.
- Select Tax Year and Final Declaration: Open the correct tax year in your software. Your MTD ITSA tax return and final declaration must normally be submitted by 31 January following the end of the tax year.
- Review Income and Updates: Check all entries, quarterly updates, and any HMRC‑provided details that your software has pulled in. Make sure all relevant income sources, gains, and adjustments have been included.
- Confirm Tax Calculations: Verify that the calculated tax matches your records and looks reasonable for the year. If there’s an error, review your entries in the software and correct any mistakes. If you still cannot identify the issue, contact your software provider or seek professional advice.
- Complete Final Declaration: Once you’re satisfied that everything is complete, confirm the final declaration in your software. This is the point where you are confirming that the information used to create your MTD ITSA tax return is complete and correct to the best of your knowledge.
- Submit the Final Declaration: Send the tax return via the software and save the confirmation for your records. Keep any reference number or receipt the software provides as evidence of submission.
What to do After MTD ITSA Submission
- Verify Successful Submission: After filing, check that the return has actually gone through. Do not assume it has been accepted just because you clicked submit. Look for the confirmation inside the software and keep a copy if possible. You can also use your HMRC online account to view obligations and check what is due.
- Amendments and Corrections: If you spot a mistake later, you can usually correct it in your software and, where Self Assessment rules allow, amend your Final Declaration. GOV.UK explains the time limits and process for amending a return, so it is better to correct the record than leave it as it is.
- Understand Payment Deadlines: Filing the return and paying the tax are linked, but they are not the same task. GOV.UK says MTD ITSA does not change how or when you pay your Self Assessment bill. The normal payment deadline still applies, and late filing can lead to penalty points, while late payment can lead to separate penalties.
Submitting your MTD ITSA return is much easier when you follow the steps in order: check if MTD applies to you, make sure your income details are complete, review your quarterly figures, finish your year-end work, and double-check the calculation before filing. Once submitted, keep the confirmation and address any corrections promptly.
If this feels overwhelming, you don’t have to do it alone. Swiftacc can guide you through the process and make sure your MTD ITSA return is submitted correctly. Book a free consultation today to see how we can support you.
